I overfunded $725 to my HSA in 2018 and have spent all to pay for medical bills in 2018. How can I withdraw the overfund if my account has $0 balance?

[MarilynG]

If you are unable to remove the excess HSA contribution, you will pay a 6% penalty on the $725.

If you were able to remove it, you would still pay tax on the entire amount of $725, and you can leave the excess contribution in your account (which you have already used anyway).

You may want to adjust your 2019 contributions to consider that you already have a 'balance' of $725, so you don't over-contribute next year.

Make sure the 'excess' is not caused by you entering your contribution amount, and TurboTax also automatically picking it up from your W-2.  This is often the cause of 'excess contributions'.

Here's more info:

https://ttlc.intuit.com/replies/4788059

[franky1]

I funded $1300 to my HSA in 2018 but I quitted my job in Feb and had HDHP with my previous employer for 2 mo. Turbotax determined that I overfunded $725. I don’t have HDHP and HSA account with my current employer so I am not able to contribute any funds to this HSA account anymore this year and in the future. Is there anything else I can do to fix the overfund? Is it possible I can just pay tax of $725 since I have used up the funds?

[MarilynG]

Yes, the penalty will be automatically figured into your return.